(a) In the case of any realty held by a partnership or other entity treated as a partnership, no levy shall be imposed pursuant to the provisions of this chapter by reason of any transfer of an interest in a partnership or other entity treated as a partnership or otherwise if:
(1) Such partnership or other entity treated as a partnership is considered a continuing partnership or other entity treated as a partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and
(2) Such continuing partnership or other entity treated as a partnership continues to hold the realty concerned.
(b) If there is a termination of any partnership or other entity treated as a partnership within the meaning of Section 708 of the Internal Revenue Code of 1954, for the purposes of this chapter such partnership or other entity treated as a partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership or other entity treated as a partnership at the time of such termination.
(c) Not more than one tax shall be imposed pursuant to the provisions of this chapter by reason of a termination described in subsection (b) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership or other entity treated as a partnership at the time of such termination.
(d) No levy shall be imposed pursuant to this part by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer.
(California Revenue and Taxation Code § 11925) (§ 8, Ord. 157, as amended by part 5, Ord. 1437-NS, eff. July 7, 2005)